Why HealthEquity Inc. (HQY) Went Down On Thursday?

We recently published a list of Pulse of the Market: Wednesday’s 10 Worst Performers. In this article, we are going to take a look at where HealthEquity Inc. (NASDAQ:HQY) stands against other Wednesday’s worst performers.

Shares on Wall Street bounced back from a bloodbath, with all main indices ending in the green on Wednesday, as investors cheered the Federal Reserve’s decision to keep interest rates unchanged.

The tech-heavy Nasdaq led the gains, rallying 1.41 percent, followed by the S&P 500 with a 1.08 percent gain, and the Dow Jones, by 0.92 percent.

Meanwhile, 10 companies defied overall market optimism, booking losses during the trading session. In this article, let’s take a look at the 10 worst-performing stocks and explore the reasons behind their drop.

To come up with the list, we considered only the companies with a $2-billion market capitalization and $5 million in trading volume.

An online investment platform, showing stocks, index funds, and a mutual fund investment platform.

HealthEquity Inc. (NASDAQ:HQY)

HealthEquity fell by 17.07 percent on Wednesday to end at $84.32 each after missing earnings estimates in its latest earnings performance.

In the fourth quarter of fiscal year 2025, HQY reported earnings per share of 69 cents, missing the Zacks Consensus Estimate by 2.82 percent. The bottom line, however, improved 9.5 percent on a year-on-year basis.

Revenues, on the other hand, came in at $311.8 million, higher by 18.8 percent year-on-year, and beating Zacks Consensus Estimate by 2.2 percent.

For fiscal year 2026, HQY said it expected revenues to settle between $1.28 billion and $1.30 billion. Adjusted EPS, meanwhile, is expected to settle between $3.57 to $3.74.

Overall, HQY ranks 1st on our list of Wednesday’s worst performers. While we acknowledge the potential of HQY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as HQY but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.